State cabinet decides not to hike property tax

Months before the Brihanmumbai Municipal Corporation (BMC) elections, the state cabinet on Wednesday decided to not increase the property taxes for buildings and lands in Mumbai for the year 2021-22

Months before the Brihanmumbai Municipal Corporation (BMC) elections, the state cabinet on Wednesday decided to not increase the property taxes for buildings and lands in Mumbai for the year 2021-22. The decision was taken in the wake of the outbreak of the Covid-19 pandemic.

Urban development department officials said that with the state’s decision, people would continue to pay the existing property tax for any building or land as they were paying in 2021-20

Urban development department officials said that with the decision, people would continue to pay the existing property tax for any building or land as they were paying in 2021-20. “A similar decision was taken in November 2020, and it has now been extended by another one year,” said an official adding that the government will promulgate an ordinance to give effect to it.

The BMC is estimated to lose revenue worth ₹1,042 crore through the decision. The civic revises the capital value of the properties every five years, based on which the property tax is levied.

Officials added that the BMC had received several requests from various stakeholders about waiver or concessions in the property tax in light of the weak economy after Covid-19. The lockdown imposed by the government had impacted the financial transactions of many small businesses, educational institutions, development works, factories and industrial areas, among others.

“Looking at the situation of the economy, which is trying to gain momentum post-lockdown, the decision, to not revise the capital value of any building or land in the current year, has been taken. The BMC could revise the capital value of the buildings and lands in the next financial year,” said an official said.